Featured Product

    PRA Updates Pre-Issuance Notification Regime for Capital Instruments

    March 10, 2020

    PRA published the policy statement PS5/20, which contains amendments to the Pre-Issuance Notification, or PIN, regime for PRA-authorized Capital Requirements Regulation (CRR) firms. PS5/20 also provides feedback to responses to the consultation paper CP20/19, which proposed amendments to the Pre-Issuance Notification regime. The proposals were intended to reflect the adoption of amendments to Part Two of the CRR via CRR2 and to make improvements identified through the PRA assessment on the quality of capital instruments. The changes in PS5/20 take effect from April 01, 2020.

    PS5/20 contains the final policy on amendments to the Definition of Capital Part of the PRA Rulebook, an updated supervisory statement (SS7/13) on definition of capital (CRR firms), an updated Pre-Issuance Notification form, an updated common equity tier 1 (CET1) compliance template, and a summary table showing the final clarification of "sufficiently in advance" notification and "substantially the same" terms (as defined in updated SS7/13). The policy set out in PS5/20 has been designed in the context of the withdrawal of UK from EU and entry into the transition period, during which time UK remains subject to European law. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework at the end of the transition period, including those arising once any new arrangements with EU take effect. PRA has assessed that the proposals would not need to be amended under the EU (Withdrawal) Act 2018 at the end of the transition period. 

    The Pre-Issuance Notification rules are designed to enhance and maintain the quality of capital resources of firms by providing PRA with the opportunity to comment on the terms and conditions of the proposed capital instruments prior to the issuance of, or amendments to, such instruments. In CP20/19, PRA proposed a number of changes to the Pre-Issuance Notification regime for CRR firms. PRA intended the proposed improvements to make the Pre-Issuance Notification regime more risk-sensitive and proportionate and to allow firms greater flexibility in issuing or amending capital instruments. PRA has received three responses to CP20/19, with respondents being generally supportive of the proposals and making a number of observations and requests for clarification. 

     

    Related Links

    Effective Date: April 01, 2020

    Keywords: Europe, UK, Banking, CRR, CRD IV, CRR2, CET1, Regulatory Capital, PIN Regime, PS5/20, CP20/19, SS7/13, Basel III, PRA

    Featured Experts
    Related Articles
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    News

    PBC Issues List of Systemic Banks, Adds 2 Foreign Banks to CERB List

    The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.

    September 09, 2022 WebPage Regulatory News
    News

    PRA Publishes Discussion Paper on Its Future Approach to Policy

    The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.

    September 08, 2022 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposed Regulation on Data Act

    The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).

    September 08, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8511